As a specialist insurer, AIG United Guaranty provides mortgage guaranty insurance (MI) – which protects lenders against losses due to credit default on residential mortgages – to the Italian mortgage market.

Italian banks elect to use MI for the following reasons:

• According to Bank of Italy regulation high loan-to-value (HLTV) ratio loans covered by an “eligible credit risk guarantee” (such as MI) are receive capital relief (4% vs. 8% capital).

• With no historical track record of performance on HLTV loans, the mortgage market in Italy can benefit from the extensive risk mitigation knowledge and tools afforded by AIG United Guaranty.

AIG United Guaranty can support Italian banks in developing prudent risk criteria and growing in riskier segments, through a variety of product and services, including:  

• Primary mortgage insurance offered in connection with newly originated loans, both under the “constant”, “proportional,” and “declining” coverage structure targeted to different borrower segments:
  
  
  • Primary residence
  • Secondary residence
  • Loans to immigrants, term contract workers, and self-employed workers
    
    
• Pool and portfolio insurance offered on existing mortgage portfolios.
  
  
• Bulk insurance that represents the credit enhancement for junior tranches of an asset-backed securities issue.

AIG United Guaranty has been in Italy since 2004, insuring HLTV loans since the introduction of mortgage insurance to the Italian mortgage market.

The Milan branch includes dedicated team of 15 professionals, and has the support of regional experts in the areas of risk, program design, operations and marketing. This structure enables AIG United Guaranty to provide a deep understanding of local markets and customer needs and, also to ensure consistency based on regional risk management experience.

Corrado Pavanati, Central Area Manager
Via della Chiusa 2
20123 Milano, Italy
Phone: 39.02.369.0355
Fax: 39.02.303.53065
E-mail: